Posted on 14 Jun 2013 by Neilson
Warren Buffett's Berkshire Hathaway Inc. agreed to provide more detail to investors on the amount its insurance units pay out in claims after major disasters, following inquiries by securities regulators.
Mr. Buffett's company also agreed to provide additional detail about the reasons the insurance units add or reduce reserves set aside to pay claims, according to a series of filings released on the website of the Securities and Exchange Commission Thursday.
Berkshire agreed to make the changes after an inquiry by the SEC into both matters in a letter dated April 2. The SEC asked that the company provide more details on the amount it spends on disaster claims "given the magnitude of catastrophe losses to your underwriting results."
Berkshire insurance units include General Re and car insurer Geico Corp., among others. In a letter to the SEC dated April 25, Berkshire Chief Financial Officer Marc Hamburg said the company agreed "to provide additional disclosures in future filings that indicate how we identify individual catastrophes as being significant" and give details on "significant catastrophe losses."